When media company buys another, goodwill is often the most costly asset acquired. World Media paid $700,000 to acquire The Dandy Dime, a weekly advertising paper. At the time of the acquisition, The Dandy Dime's balance sheet reported total assets of $1,200,000 and liabilities of $600,000. The fair market value of The Dandy Dime's assets was $800,000.

1. How much goodwill World did Media purchase as part of the acquisition of The Dandy Dime?

2. Journalize World Media's acquisition of The Dandy Dime.